Who will really benefit from Europe’s new financial policy initiative?

On 30th September 2015 the European Commission
released an “action
plan” to implement the Capital Market Union initiative, the last piece of
the EU’s policy response jigsaw following the 2008 financial crisis.

The
Commission claims this initiative will serve growth and jobs, with a particular
focus on small and medium size enterprises. But Global Witness and others
believe it’s a false promise. In reality, the Commission’s proposal is designed
to increase the global competitiveness of European investment banks and private
equity funds by reducing regulatory controls, with major risks to the people
and environment of Europe and beyond – including financing land grabbing and
deforestation.

A joint
statement by 27 organisations across Europe expresses our common areas of
concern about the Capital Market Union.

Global Witness, Friends of the Earth Europe, Action Aid and
SOMO also published an Op-Ed
in Euractiv calling on Europe’s Parliamentarians and 28 Member States to
re-shape the Capital Market Union into robust legislative proposals to halt
financial instability and place a curb on investments which harm human rights
and the environment.